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AlekseyPX
3 years ago
5

For an investment to be classified as a current​ asset, A. the investment must be easily convertible to cash. B. the investor mu

st intend to convert the investment to cash within one year or current operating​ cycle, whichever is​ longer, or use it to pay a current liability. C. both a and b must be met for the investment to be classified as a current asset. D. neither a or b are relevant to the classification of an investment as a current asset.
Business
1 answer:
Margaret [11]3 years ago
3 0

Answer:

<h2>For an investment to be considered as current asset,it has to be convertible into cash and within one year of business operation or current operating cycle,whichever is longer.Hence,the correct answer is option C.</h2>

Explanation:

In Business Studies or Accounting,current assets are identified as those assets which are normally convertible into cash value usually within 1 year of business operation and used to pay any current liability.Therefore,any short term investment in business which can be used or utilized during the regular business operation and converted into cash value within one year of operation can be termed as current assets.Therefore,to satisfy the conditions to qualify as current asset,any business investment has to be cash convertible which has to be conducted within one year of operation or the operating cycle,depending on their duration.

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Once you've found your target market, your business is on track, and your customers seem satisfied, ongoing market research can
Murljashka [212]

Answer:

1st question: B. inform you of coming trends.

Even after understanding your customer segment and satisfying your customers, you have to keep up with the market trends and the changing needs of customers if you need to be successful.

2nd question: C. Provide check boxes for each choice.

A simple question and check box type questionnaire is the best way to get customer feedback as it consumes less time to fill.

Explanation:

4 0
3 years ago
Prepare journal entries to record each of the following four separate issuances of stock. A corporation issued 5,000 shares of $
asambeis [7]

Answer and Explanation:

1. Cash Dr, $120,000

         To Common Stock $100,000    (5,000 × $20)

         To Additional Paid - in - Capital in Excess of Par $20,000

(Being issue of common stock is recorded)

2. Cash Dr, $28,000

         To Common Stock Dr, $2,500   (2,500 × $1)

         To Additional Paid - in - Capital in Excess of Stated $31,500

(To record issue of common stock to promoters)

3. Organization Expenses Dr, $28,000

          To Common Stock Dr, $28,000

(Being issue of common stock in exchange of organization expenses is recorded)

4. Cash Dr, $121,750

          To Preferred Stock $93,750  (1,250 × $75)

          To Additional Paid - in - Capital in Excess of Par (Preferred) $28,000

(Being issue of Preferred stock is recorded)

8 0
3 years ago
A. Cash receipts from customers for services rendered __________ Operating __________Inflow
vaieri [72.5K]

Answer:

a. Cash receipts from customers for services rendered

Indication: <u>Operating activities </u>and <u>Cash Inflow</u>

b. Sale of long-term investments for cash

Indication: <u>Investing actiivity</u> and <u>Cash Inflow </u>

c. Acquisition of property, plant and equipment for cash

Indication: <u>Investing activity</u> and <u>Cash Outflow</u>

d. Payment of income taxes

Indication: <u>Operating activity</u> and <u>Cash Outflow</u>

e. Bonds payable issues for cash

Indication: <u>Financing Activity</u> and <u>Cash Outflow</u>

f. Payment of cash dividends declared in previous year

Indication: <u>Financing activity</u> and <u>Cash Outflow</u>

g. Purchase of short-term investments (not cash equivalents) for cash

Indication: <u>Investing activity</u> and <u>Cash Outflow</u>

h. Purchases of inventory for cash

Indication: <u>Operating activity</u> and <u>Cash Outflow</u>

<u />

<u>Definition of terms</u>

<u>Operating Activity:</u> This activity will show how much the cash flow from the business in operating . This included net profit and changes in assets and liabilities and amortization expenses .

<u>Investing Activities</u>: This part is shows the where the money is invested or investment is sold.

<u>Financing Activities</u>: This activities will show the cash flow from financing activities between the reporting period example. Raising or payment of the fund through the common stock , preference and bonds etc.

5 0
3 years ago
Profitability Analysis Kolby Enterprises reports the following information on its income statement: L04 Net sales ......... . ..
notsponge [240]

Answer:

Gross profit percentage = Gross profit / Net sales

= (Net sales - COGS) / Net sales

= (250,000 - 150,000) / 250,000

= 40%

Return on sales ratio = EBIT / Net sales

= (Gross profit + other income - Administrative expenses - Other expense - Selling expenses) / Net sales

= (250,000 - 150,000 + 15,000 - 10,000 - 10,000 - 50,000) / 250,000

= 18%

<u>With new product:</u>

Gross profit percentage = Gross profit / Net sales

= (Net sales - COGS) / Net sales

= (250,000 + 45,000  - 150,000 - 38,000) / (250,000 + 45,000)

= 36.3%

Return on sales ratio = EBIT / Net sales

= (Gross profit + other income - Administrative expenses - Other expense - Selling expenses) / Net sales

= (250,000 + 45,000  - 150,000 - 38,000 + 15,000 - 10,000 - 10,000 - 50,000) / (250,000 + 45,000)

= 52,000 / 295,000

= 17.6%

3 0
3 years ago
The process of making decisions about goals and activities that an organization will pursue in the future is referred to as.
Anarel [89]

The process whereby a organization makes decisions about what they will do in the future is known as planning.

<h3>What is planning?</h3>

Planning simply means the process of thinking in order to achieve a desirable goal.

Planning is the process of making decisions about goals and activities that an organization will pursue in the future.

Organizations make plans in order to increase sales, revenue, etc.

Learn more about planning on:

brainly.com/question/25453419

6 0
2 years ago
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